American Institutes for Research

When students drop out of college, it's not just disappointing for them and their parents -- it's also bad news for Uncle Sam, and even for their next-door neighbors. According to a new report, a single year's worth of dropouts cost the nation $4.5 billion in lost income, and lost federal and state income taxes.

A new study by the nonprofit American Institutes for Research set out to tally the costs associated with freshman students who don't return to the college where they initially enrolled. It found that taxpayers foot a pretty steep bill.